A $10,000 loan at 8% costs $2,166 of interest over 5 years and $4,559 over 10 years.
| Rate | 1 year | 2 years | 3 years | 5 years | 7 years | 10 years |
|---|---|---|---|---|---|---|
| 3% | $163 | $315 | $469 | $781 | $1,099 | $1,587 |
| 4% | $218 | $422 | $629 | $1,050 | $1,482 | $2,149 |
| 5% | $273 | $529 | $790 | $1,323 | $1,872 | $2,728 |
| 6% | $328 | $637 | $952 | $1,600 | $2,271 | $3,322 |
| 7% | $383 | $745 | $1,116 | $1,881 | $2,678 | $3,933 |
| 8% | $439 | $855 | $1,281 | $2,166 | $3,092 | $4,559 |
| 9% | $494 | $964 | $1,448 | $2,455 | $3,515 | $5,201 |
| 10% | $550 | $1,075 | $1,616 | $2,748 | $3,945 | $5,858 |
| 12% | $662 | $1,298 | $1,957 | $3,347 | $4,828 | $7,217 |
| 15% | $831 | $1,637 | $2,480 | $4,274 | $6,209 | $9,360 |
| 18% | $1,002 | $1,982 | $3,015 | $5,236 | $7,655 | $11,622 |
| 20% | $1,116 | $2,215 | $3,379 | $5,896 | $8,653 | $13,191 |
How it is computed
Total interest = monthly payment × number of months − amount borrowed, with the payment P × i ÷ (1 − (1 + i)^−n) and i the annual rate ÷ 12. Fees are not included.
FAQ
Why does doubling the term more than double the interest?+
The balance falls more slowly, so interest is charged on a larger amount for longer.
How can I cut the total interest?+
Borrow less, choose a shorter term or pay extra on the principal; each lowers the balance that interest is charged on.